Beleaguered Trade Bank Seeks Sale Or Partner

Hamilton Bancorp Inc. said Wednesday that it has hired the investment bank CIBC World Markets "to explore strategic alternatives" that could range from a joint venture to a sale.

The Miami holding company for Hamilton Bank has had a rough year. Last fall, loan losses forced the bank to post millions of dollars in red ink in the third quarter and to jack up loan-loss reserves by $11.5 million. Late last month, Hamilton restated its 2000 financial results to post a $5.1 million loss for 2000.

Hamilton's president, Carlos Bernace, said Wednesday that the bank is still committed to its principal business line, trade financing, which he said is critical to the bank and important to the South Florida economy.

However, he said the bank wants to find partners and sources of capital to extend its business reach.

"The idea is we want to continue to carry out the bank's mission," Bernace said. "We feel that to continue to grow that area we need to explore alternatives."

Bernace said the bank picked CIBC World Markets partly because of familiarity: The financial firm helped the 13-year-old bank in its initial public stock offering.

"They've been with us for a while," he said.

Bernace said the talks with CIBC are "very preliminary." Still, he said "anything that comes across the table" will get a look.

"A sale is obviously in the realm of possibilities," he added. "But right now we just want to explore what's out there."

Hamilton has nine branches -- eight in Florida and one in Puerto Rico.